As I think about real estate and trying to help folks get what they expect out of a
transaction, it occurs to me that one area that can cause a lot of heartache is confusion
about real versus personal property.  

     Real property is real estate: the land, the structure, and whatever is permanently
attached. Personal property is anything you can pick up and walk away with. Now, if this
were really as simple as I’ve described, I’d be writing a very short column. The
confusion occurs in the gray area between the two. 

     For example, an in-ground swimming pool is real property. A doughboy
swimming pool is personal property. A custom-built hutch that fits perfectly in an alcove
and looks attached is only real property if it is attached to the house. Plants in a garden
are real property, unless they are in pots that can be carried away; then they’re personal
property. A hose affixed with a clamp that is part of an irrigation system is real property,
but a garden hose that screws onto a spigot is personal property. Windows are real
property; the tailor-made window treatments are personal.

     Why does this matter? When you buy or sell a home, real property is
automatically included in the transaction. Personal property is not. Purchase
agreements must explicitly name any personal property to be included in the purchase.
If the house has an in-ground pool, be sure your offer says, “…includes all swimming
pool equipment.” If the listing agreement outlines what is included, your offer can refer
to that agreement with a statement like, “includes all personal property specified in
listing agreement.” If there is ANY question, spell it out. The hot tub looks permanent,
but it isn’t. Now is not the time to save on paper.

     While I’m thinking about it, you should also make sure you’re getting the real
property you mean to purchase. Go back and read that Preliminary Title Report. It
includes things like the owner’s name, any liens on the property, and the assessor’s
parcel number. Double-check the title of the property and the location. If you are buying
more than one parcel, make sure they are both listed on the offer! Talk to your
REALTOR and/or title company representative about the legal description. 

     If you’re not sure about the boundary lines on a property, you can always hire a
surveyor. This is rarely needed, but if you’re buying a ranch, for example, and there’s a
dispute about whether the well is on your side of the property line or your neighbor’s,
you need to know.

     As long as you are working with a competent REALTOR, you should be fine. Just
follow these guidelines: understand the difference between real and personal property
and make sure your purchase agreement lists the entire property for sale and is explicit
about any personal property to be included.

      If you have questions about property management or real estate, please contact
me at [email protected] or call (707) 462-4000. If you have an idea for a future
column, share it with me and if I use it, I’ll send you a $25 gift certificate to Schat’s
Bakery.

     Dick Selzer is a real estate broker who has been in the business for more than
45 years. The opinions expressed here are his and do not necessarily represent his
affiliated organizations.